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Are friends interested in buying your home? At first glance, that's certainly good news! You know each other well, conversations are open and honest, and there is a lot of trust between both parties. Moreover, it can save you the necessary costs. However, there are also pitfalls to consider. In this article, you will find our tips for a successful sale to friends.
What are the advantages of selling a house to friends?
Selling your home to friends can offer many advantages. You save time and costs because you don't have to put the property on the market. You don't need to spend money on taking professional photos, planning viewings, or placing ads on housing websites. Often, you can also complete the sale more quickly because there are no lengthy negotiation rounds with multiple interested parties.
Additionally, you know exactly who you are dealing with. You know each other well and can therefore communicate openly about the price and the condition of the property. This usually leads to a pleasant and transparent sales process, without the usual stress of a property sale. Besides, it feels good to sell your beloved house to someone you have known for years.
But beware: there can also be a number of disadvantages to selling a property to friends. You can read about them in the next paragraph.
What are the potential disadvantages of selling a house to friends?
While selling a property to friends has many advantages, the friendly bond can also bring disadvantages. One of the biggest risks is that tensions may arise, especially if there is disagreement over the sale price. It can be difficult to advocate for your own interests, such as obtaining a fair price, when the buyer is a good friend.
Emotional involvement can also lead to being less careful in the sales process, which can result in legal errors or complications. For example, do you want to sell your property at a cheap friends' price? Be careful: selling the property below market value is considered a gift by the tax authorities, which means you will have to pay additional taxes.
To avoid these issues, it's wise to enlist a real estate agent. A real estate agent offers an objective perspective and can assist in determining the right asking price, drafting documents and contracts, assessing the buyer's financial situation, and negotiating the price, making the process smoother and more professional.
Read more about selling your house
Save costs? Opt for partial services from a real estate agent!
When you hire a real estate agent, you probably immediately think of using a full-service package. While it's certainly nice to be completely taken care of, in the case of a sale to friends, you also pay for services you won't use. Think of taking professional photos, planning viewings, and creating advertisements.
That's why it's good to know that you can also choose to use partial services. Instead of taking a full package, with partial services, you only pay for the specific tasks you need help with. This could be, for example, determining the right asking price, drafting the provisional sales contract, or conducting negotiations.
This way, you can save costs while still benefiting from expert advice and guidance at the moments you need it!
Tip: Are you looking for your real estate agent through Mijn Verkoopmakelaar and want to use partial services? Mention in the description of your registration which services you want to use, so the real estate agents can make you a suitable proposal and you can compare the services and rates well with each other.
Through Mijn Verkoopmakelaar, you can quickly get in touch with the best real estate agents in the area. Register your property and receive various proposals from real estate agents in the coming days. Find the best real estate agents at competitive rates, and compare based on approach, costs, and performance.
- Receive proposals from multiple real estate agents
- Get upfront clarity about the costs and approach
- Choose based on performance and results
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Tips for a successful sale to friends
To ensure the successful sale of your home to friends, it is wise to keep a few tips in mind. Above, we already highlighted the importance of a real estate agent. Additionally, consider the following tips.
Tip 1: Hire an appraiser to determine the property's value
If you're selling your home to a good friend, it can be challenging to determine an objective, market-conform sale price. Therefore, hire an appraiser to determine the real value of the property. This will help you arrive at a fair sale price. It is also possible for both (seller and buyer) to hire an appraiser, where the appraisers together determine a good guideline price. This provides ultimate transparency in the process.
If one of the parties still wants to negotiate after the appraisal, it is wise to let a real estate agent handle it. This impartial professional can conduct the negotiations objectively and without emotional involvement, minimizing tensions in the friendship.
Tip 2: Check the friend's (buyer's) financial situation
In a friendship, it is normal to trust each other and assume each other's good intentions. Nevertheless, it is wise not to trust the friendly buyer blindly when it comes to financing. If it ultimately doesn’t work out with the financing, it also has significant consequences for you. You have not given other interested parties the chance in the meantime and have lost valuable time.
To prevent this, it is important to thoroughly check your friend's financial situation before taking further action. Do not rely on a verbal promise, but always ask for written confirmations and documents that support the financing. Your real estate agent can assist you with this (if it falls within their tasks, of course).
This prevents costly time waste and ensures that you are not faced with surprises if the financing unexpectedly does not come through.
Tip 3: Properly disclose any hidden defects
It is always important to be open about hidden defects, but when selling a property to a friend, it is even more important. These issues will inevitably come to light, and if it turns out you haven’t been honest about them, it can cause tensions in the friendship. By being transparent about all defects and problems in the property from the start, you avoid misunderstandings and keep the relationship healthy.
